I would like to know if it is possible, seriously possible, to do this myself. We have land and would like to build a home on it this fall, low credit scores though. Mid-500s to the best of my knowledge. Where do I start and if I do start, does it have negative effects as well? Say I inquire into an old bill, will it bring it back to current and have them start hounding me and remain for yet another 7 years??
RE: Advice on repairing credit The 7 years is supposed to start within 6 months of the original date of delinquency. So trying to negotiate an old debt shouldn't reset the clock. Creditors and Collection agencies aren't always law abiding so what is "supposed" to happen isn't always the case and then you have to fight to get it straightened out. If you already have existing credit and are just trying to remove the negative stuff you should just call them up and see if they are willing to remove all the negative stuff from your credit reports in exchange for payment. If they are, get it in writing, send them a check and follow up to make sure they are doing what they agreed. Another strategy is to dispute the negative items with the CRAs first and if they come back verified (often they don't) then try to negotiate with the creditors.
RE: Advice on repairing credit Okay here's what I did. I made a list of all the derogatory debts that were listed and their dates of "last activity." Then I started with the NEWEST ones (the most current) and began writing letters requesting confirmation that I actually owed the thing. From that point, they were given 30 days to respond. If they didn't, I wrote to Equifax, TU, Exp and requested removal of the item per my dated letter. This took care of 6 debts (I had paid them all, but wanted them OFF my record.) The reason for starting with the most current ones is that they are the ones likely to stay on the longest. Others may disagree, but my thoughts were why work on something that is 6 years old and close to "falling" off my credit, when another one will be there for another 5. Then with the 2 that were left (I hadn't paid them a dime), I negotiated settlements. ALL settlements were final when I got a confirmation letter stating that either the entire item would be removed or that the item would be cleared of ANY and all negative/derogatory remarks - IN WRITING! Never accept verbal only, get it in writing by following up all verbal agreements with a letter. I'm still fighting with one. But a major card company, notorious for saying "Screw you" actually settled (this was a corporate card, however, so the circumstances are a bit different). Keep all documentation of letters sent, what was said, etc. Agree to half, if you owe anything - say you're headed for bankruptcy if need be. Creditors would rather have something from you, than nothing. When you have the debts settled, send in the documentation to the 3 agencies listed above. They have 30 days to remove/correct the information or you can sue them under the Fair Credit Reporting Act. Finally, after A LOT of hard work, I've gone from a 560 to a 690 rating. In one month, when my last account ages to 7 years, I'll request that it be removed from my credit record and my rating should be well above 700. REMEMBER: Don't settle anything without getting "something in return." That something - is the negative/derog remark taken off your record. Saying something is "settled", "paid", etc., means absolutely nothing against your credit score. Sad but true. Last, you can buy a house with damaged credit. There are a lot of companies out there willing to finance people with tarnished credit. The rates stink but if for two years you can swing the payments, you can refinance and have primo credit, a house, and a life. Good Luck!
RE: Advice on repairing credit PJ: Do you know if you could post the letter you wrote to the collection agencies? Another question: When were those debts all paid off and settled or were some of them not when you wrote the letter? Once you didn't receive a letter from them (collection agencies) confirming the debts, what type of letter did you write to the CRAs to dispute the items on your credit reports? Did you use any assistance from other companies such as Lexington? Thanks in advance..
